I know that you can use an FHA loan to purchase a preexisting duplex (aka "house hack") but can you use the FHA construction loan to BUILD a NEW duplex?

@Cody Rosenbalm The answer is YES, NO, & IT DEPENDS. FHA 203k loans are not permitted to build new residential properties because they are used to rehab existing properties. So, the answer is NO. However, if there is an existing property that you can tear down and build a 1-4 unit residential property, then the answer is YES. You can also convert an existing property into a 1-4 unit property. So, a single unit property to a duplex or a 4-plex to a single unit or a triplex to a 4-plex. As long as the final product ends up being a 1-4 unit residential property, the answer is YES. But, depending on the highest and best use for the land and any lender overlays, the answer is IT DEPENDS.

@Cody Rosenbalm check out a construction to permanent loan. Interest only for 12months during build and automatically rolls to conventional after obtaining C/O. One closing

Unfortunately the 203k loan cannot be used for new construction. But still worthwhile to find a duplex that needs a lot of work and use the 203k loan for that.

Can I use an FHA Construction Loan to Build a New Duplex? Can I use an FHA Construction Loan to Build a New Duplex?

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Can I use an FHA Construction Loan to Build a New Duplex?

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